By Oakley                                             H.B. No. 1467
       74R6130 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to membership in the Teacher Retirement System of Texas by
    1-3  persons participating in the optional retirement program.
    1-5        SECTION 1.  Section 830.106, Texas Government Code, is
    1-6  amended to read as follows:
    1-7        Sec. 830.106.  OPTIONS A participant in the optional
    1-8  retirement is not eligible for membership in the retirement system
    1-9  unless the person:
   1-10              (1)  terminates employment covered by the optional
   1-11  retirement program; and
   1-12              <(2)>  becomes employed in the public school system in a
   1-13  position that is not eligible for participation in the optional
   1-14  retirement program; or
   1-15              (2)  files an election with the retirement system on or
   1-16  before September 1, 1997, to establish membership in the retirement
   1-17  system and cease participation in the optional retirement program.
   1-18  The election shall be under rules prescribed by the State Board of
   1-19  Trustees and the Internal Revenue Service.  A person who files an
   1-20  election under this subsection may retain any benefits or other
   1-21  rights accrued under the optional retirement program during the
   1-22  person's participation in the program.  A person who files an
   1-23  election under this subsection may reinstate service credit in the
   1-24  retirement system that was relinquished by withdrawal of
    2-1  contributions from the retirement system under Section 830.104 of
    2-2  this code.  The credit may be reestablished by depositing the
    2-3  amount withdrawn plus a reinstatement fee of 10 percent per annum
    2-4  compounded annually from the date of withdrawal to the date of
    2-5  redeposit.   A person may also purchase service credit in the
    2-6  retirement system for state service rendered while in the optional
    2-7  retirement program by depositing an amount equal to the sum of the
    2-8  state's and employee's contribution rate in the retirement system
    2-9  that was in force at the time of service rendered plus a fee of 5
   2-10  percent per annum compounded annually from the date of service
   2-11  rendered to the date of deposit.  All deposits shall be credited to
   2-12  the state contribution account of the retirement system.
   2-13        SECTION 2.  This Act takes effect September 1, 1995.
   2-14        SECTION 3.  The importance of this legislation and the
   2-15  crowded condition of the calendars in both houses create an
   2-16  emergency and an imperative public necessity that the
   2-17  constitutional rule requiring bills to be read on three several
   2-18  days in each house be suspended, and this rule is hereby suspended.